Which Statement Concerning the Current (Working Capital) Ratio Is Incorrect

Multiple Choice

Which statement concerning the current (working capital) ratio is incorrect?

A) A low current ratio may indicate difficulty in meeting short-term commitments.
B) The current ratio can be manipulated at balance date,
C) A high current ratio may indicate excessive investment in working capital.
D) A current ratio of $1.50 of current assets for each $1 of current liabilities should always be maintained.
E) g. by using cash to pay off short-term debt.